5 Great ETFs That Profit From A Weak Dollar

Over the last week Wall Street has been hit with financial news covering everything from Lehman’s bankruptcy to American International Group‘s bailout and the SEC’s ban of short selling in 799 financial stocks.

While the effects have been wide spread one new bullish trend has re-emerged as the dollar’s ego has once again been hit hard. As investors retreat from the dollar they look to two key areas for safety, hard assets such as gold and silver and oil.

Gold is now trading back at nearly $900 and Oil today had a one day record price jump closing at $120.92.

How long this new trend sticks around for is any investor’s guess, but we will cover it for readers until the bitter end. Here are five great ETFs that have made a run since the beginning of last week:

gold bars

1. Spider Gold Trust (NYSE:GLD). This exchange traded fund tracking the price of the Gold bullion has surged from $75.55 to a close today of $89.35 in just six trading days.

2. Ishares Silver Trust (AMEX:SLV). The exchange traded fund tracking silver has jumped over 30% since last Monday.

3. Market Vectors Gold Miners ETF (AMEX:GDX). A great play on gold mining stocks GDX has soared over 25% since the beginning of last week, closing today at $38.09.

4. United States Oil Fund (AMEX:USO). Tracking the spot price of west texas light sweet crude USO today had a 6% price jump closing at $87.60 after trading as low as $72.95 last week.

5. Powershares DB Commodities Index Tracking Fund (AMEX:DBC). A great play on commodities as a whole this ETF is up over 15% since bottoming last week at $31.70.

Looking for Trade Ideas? Read our review of Dan Zanger, the Investor who turned $10,000 into $42 million! Also check out this Gold technical analysis video.

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  1. says

    In my mind this is the best/only way to play this market. I went long GLD and SLV today with an explanation of the trade on my blog.

    I am looking into the DBA and DBC as well and maybe some MOO. With the weird behavior in oil today, I’m looking to let crude sort itself out and I’ll figure out my play down the road.

    Another timely post for an increasingly tough market.

    Good luck and good trading.


  2. Justin says

    Thanks for the tips Blain. I took positions in GLD and USO last Wednesday and have enjoyed a 5% and 12% gain in each :grin:

    I learned of Dan Zanger from one of your previous blogs and was highly suspicious at first. Why would a guy that makes untold fortunes in the market charge for a monthly service? I took his trial period thinking it was going to be a bunch of fluff and sales tactics but was supremely surprised by what I found. I’m now a paying subscriber and haven’t looked back since.

    +1 for Dan Zanger! (take his free trial!)


  3. says

    Hey Blain,

    Thank for telling me about the link. I am the worlds worst typist.

    I am watching how ags act here. I am a fan of Jim Rogers and he has strong arguments for them despite the recent sell off. They are on my radar, but I am not a buyer just yet – I have worked up a partial trading plan though that I’ll post tonight or tomorrow showing different entries.

    As far as DBA vs DBC vs MOO:

    DBA is a cleaner agriculture play consisting of wheat,corn,soybeans & sugar.

    DBC is less an ag play and more of a commodity play mixing crude, heating oil, corn,gold, aluminum & wheat.

    MOO is an ag services play with holdings in Potash, Syngenta, Mosaic, John Deere..well you get the point.

    Last point with Zanger. I am a huge fan as well, but I just want to urge caution to following some of the very aggressive day trades put out in his chat room. This is a tough market and it takes more than it gives.

    Zanger said in last nights letter that he is in gold and cash – that should tell everyone something.

    Trade smart.


  4. says

    You’re better off trading DBO or USL because of the contango in the oil market. USO does the worst thing in contango – gets you less and less oil each month!!